Average private rent continues to climb

Average private rents in the UK have gone up by more than £100 in the last year, official data shows.

According to the Office for National Statistics (ONS), the typical private rent increased by 9% - or £110 - in the year to December 2024.

Although this is down from the 9.1% figure recorded a month earlier, it’s still not far behind the record high annual rise of 9.2% in March 2024.

This latest increase means that in December last year, tenants were paying an average of £1,327 a month for housing.

Why are rents going up so fast?

A shortage of available housing is one huge factor that’s fuelling the increase in rents, as demand continues to outstrip supply.

According to Rightmove, each available rental property on its books receives an average of 11 enquiries.

That’s nearly double the figure seen in 2019.

And significantly, this figure has soared despite the number of available properties actually increasing by 7%, and the number of prospective tenants planning to move falling by almost a fifth in the last year.

Meanwhile, demand for rental accommodation is still being driven by rising house prices.

According to the latest ONS data, average UK house prices went up by 3.3% in the year to November 2024.

That takes the price of a typical property to £290,000.

Big rent increases tipped to continue in 2025

The pressure on tenants shows no signs of easing over the next few months, as supply and affordability issues continue.

As Alex Upton of Hampshire Trust Bank says, the latest ONS data is “yet another reminder of just how out of balance the rental market is”. 

“With this ongoing disparity, 2025 looks set to be a record-breaking year for rents,” he commented.

“Rents are climbing fast, and there’s no sign of this slowing.

“With home ownership increasingly out of reach, a strong and stable rental market has never been more essential.” 

Sarah Coles, head of personal finance at Hargreaves Lansdown, added that December’s rent rises have pushed more renters “to the brink”.

“The rate of rises has eased very slightly, but that will come as no comfort to anyone facing a 9% overnight hike in the cost of keeping a roof over their head,” she said.

Ms Coles warned that there is “no imminent solution to the imbalance in the rental market”, which means that for some, the possibility of owning a house is the “only possible light at the end of the tunnel”.

However, she said this is “easier said than done given the horrible cost of renting, which is why tenants have built less in savings than average”.

Which areas are seeing the biggest rent increases?

According to the ONS data, in the year to December 2024, average rents in England rose by 9.2% to £1,369.

London saw the fastest increase during this period, with average rents going up by 11.5%.

But interestingly, the north of England wasn’t far behind.

In the north-west, there was an above-average increase of 9.6%, and the north-east saw rents go up by 8.9%.

In Wales, rents went up by 8.5% to £777, and Scotland saw a 6.9% increase, taking average rents to £991.

Seek free debt advice 

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